Company A sells Rs 100 preference shares at a dividend of Rs 12. If it were to sell debentures, interest rate cost would be 13%. Tax rate is 30%. Find (a) the after-tax cost of each of the financing...

Company A sells Rs 100 preference shares at a dividend of Rs 12. If it were to sell debentures, interest rate cost would be 13%. Tax rate is 30%. Find (a) the after-tax cost of each of the financing method, and (b) the after-tax return if you invest in these instruments.